New Delhi: India’s leading destination for pre-owned phones, OLX India’s latest study confirms the sway the Apple iPhone continues to have in terms of smartphone brand preference in the pre-owned market in India. The demand for Apple iPhone is followed by Mi phones and Samsung, respectively. The data further states that post the Covid-19 second wave, the demand for mobile phones continued unabated this year. Tier 3 cities pulled in the most demand at 43 percent, followed by the contribution of Tier 2 cities at 30 percent and Tier 1 cities at 27 percent. The surge in internet usage for education, entertainment, work from home, and the basic need for connectivity, fueled by Covid-19 is driving a mobile revolution, led by Tier 3 cities as consumers look for value-for-money smartphones with the latest technology.
The supply and demand for mobile phones have been steady to high respectively in 2021 and continued unabated during the Covid-19 second wave. The year started with 100 percent demand for mobile phones and experienced a high of 115 percent in the months of June and July. While in 2020, the overall demand for pre-owned phones increased by 61 percent during lockdown 1 and post the unlock. Demand had jumped by 44% post unlock vs pre-Covid lockdown period.
Demand continued to be high in the 90s during all other months to this year. Relatively to demand, while supply has been steady too through this year with most months recording a supply of 90+ percent, it fell to 77 percent in May owing to the impact of the Covid-19 second wave.
The penchant and priority for smartphones in India are evident from the OLX data. In both demand for and supply of mobile phones, iPhone continues to hold sway as the most desired smartphone brand in the preowned market. In the OLX pre-owned smartphone study 2020, Apple iPhone emerged as the most preferred smartphone by Bharat. Mi Phone, Samsung, Vivo, Oppo, Realme, and OnePlus constitute the other brands in terms of preference by the share they command on OLX. All these brands put together contribute 90 percent of the total demand on OLX, with Apple iPhone constituting a third of it.
The most competitive price bands are below Rs. 10,000 and between Rs. 10,000 – 20,000, fulfilling nearly 80 percent of the total demand for mobile phones on OLX. Of the total demand, 43 percent of demand is pulled from Tier 3 cities, while Tier 2 cities contribute 30 percent and Tier 1 cities contribute 27 percent. Supply mirrors a similar trend on OLX.
While the demand for Apple IPhone is the highest in Tier 1 cities at 34 percent, BBK Electronics portfolio brands- OnePlus, Vivo, Oppo and Realme are the most popular with consumers in Tier 2 and 3 cities contributing to 63% of the total smartphone demand.
Uttar Pradesh, Maharashtra, Delhi, Punjab, and Andhra Pradesh leads in terms of states that generate the highest demand and supply of mobile phones.
“Several studies throughout the year, including this smartphone report, allows us to be in touch with our consumers’ sentiments. This study throws up key insights on the mobile revolution underway! With consumers moving online in reaction to coronavirus restrictions, work, studies, shopping, staying in touch especially via video all shifted online, and this is clearly reflected in the desire of Indians to own a smartphone. Tier 3 consumers are leading the demand which is a hugely positive development”, said Sapna Arora, CMO, OLX India. “As India’s Internet users nearly double over the next few years, propelled by the increasing availability of smartphones and high-speed connectivity, OLX India will be an intrinsic part of this revolution by offering consumers value for money deals”.